BILL NUMBER: SB 1240	CHAPTERED  05/04/99

	CHAPTER   21
	FILED WITH SECRETARY OF STATE   MAY 4, 1999
	APPROVED BY GOVERNOR   MAY 3, 1999
	PASSED THE ASSEMBLY   APRIL 22, 1999
	PASSED THE SENATE   APRIL 19, 1999
	AMENDED IN SENATE   APRIL 15, 1999
	AMENDED IN SENATE   APRIL 12, 1999

INTRODUCED BY   Senator Burton
   (Coauthor:  Senator Costa)

                        FEBRUARY 26, 1999

   An act to amend Sections 123280, 123310, and 123315 of the Health
and Safety Code, relating to health, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1240, Burton.  Maternal and child health:  food program:
vendors.
   Existing law authorizes the State Department of Health Services to
conduct a statewide program, to be known as the Special Supplemental
Food Program for Women, Infants, and Children, for providing
nutritional food supplements to low-income pregnant women, low-income
postpartum and lactating women, and low-income infants and children
under 5 years of age, who have been determined to be at nutritional
risk by a health professional, based on criteria established by the
department.
   Existing law requires the department, under any program
established pursuant to these provisions, to authorize retail food
vendors, by written agreement, to accept nutrition coupons, and
requires the department to establish specified criteria to limit the
number of retail food vendors with which the department enters into
agreements.  The specified criteria includes the prices the vendor
charges for foods in relation to other stores in the area.
   This bill would instead include among the specified criteria the
prices the vendor charges for foods in relation to other peer groups,
as defined.  The bill would require the department to authorize
retail food vendors, by written agreement, to also accept
reimbursement, according to the system developed by the department,
in addition to food coupons.
   Existing law requires the department to ensure that, at a minimum,
an authorized vendor take specified actions with respect to the
programs.
   This bill would include among these specified actions that a
vendor accept up to the maximum allowable department reimbursement as
payment in full for the maximum allowable quantity of food listed on
the food instrument, and comply with department rules of vendor
authorization, reimbursement, and monitoring that control program
food costs, maximize participant access, and ensure program
integrity.
   The bill would also require the department to administer these
provisions and to adopt minimum standards and regulations.
   The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 123280 of the Health and Safety Code is amended
to read:
   123280.  (a) The department may conduct a statewide program for
providing nutritional food supplements to low-income pregnant women,
low-income postpartum and lactating women, and low-income infants and
children under five years of age, who have been determined to be at
nutritional risk by a health professional, based on criteria
established by the department.  Any program established pursuant to
this section shall do all of the following:
   (1) Comply with all the requirements of this article.
   (2) Be conducted only if a special project is authorized by
inclusion in the Budget Act or notification is provided to the
Legislature pursuant to Section 28 of the Budget Act, and federal
funds are appropriated therefor.
   (3) Be known as the California Special Supplemental Food Program
for Women, Infants, and Children.
   (b) The department shall administer this article and shall adopt
minimum standards and regulations as necessary.
  SEC. 2.  Section 123310 of the Health and Safety Code is amended to
read:
   123310.  The department, under any program established pursuant to
this article, shall authorize retail food vendors, by written
agreement, to accept nutrition coupons and reimbursement according to
the system developed by the department.  The department shall
authorize an appropriate number and distribution of food vendors in
order to assure adequate participant convenience and access and to
assure that state or local officials can effectively manage review of
authorized food vendors in their jurisdictions.  The department
shall establish criteria to limit the number of retail food vendors
with which the department enters into agreements.  The criteria, at a
minimum, shall include:
   (a) The prices the vendor charges for foods in relation to other
vendors in its peer group.  For purposes of this subdivision, "peer
group" means a group of vendors with similar characteristics that may
include, but shall not be limited to, any or all of the following:
   (1) Geographic location of the store.
   (2) Store size.
   (3) Type of store.
   (4) Number of cash registers.
   (5) Sales volume relating to any program established pursuant to
this article.
   (6) Gross sales volume.
   (7) Inventory.
   (8) Other vendor characteristics established by the department.
   (b) The ability of the department to ensure that authorized
supplemental foods will be provided through in-store compliance
purchases.
   (c) The adequacy of the shelf stock of the authorized supplemental
foods.
   (d) Past performance of the vendor in compliance with this article
and with the Food Stamp Program.
  SEC. 3.  Section 123315 of the Health and Safety Code is amended to
read:
   123315.  (a) The department, under any program established
pursuant to this article, shall ensure that, at a minimum, the
authorized vendor shall do all of the following:
   (1) Redeem nutrition coupons only from persons bearing appropriate
identification provided by the department.
   (2) Redeem nutrition coupons for only those foods specified
thereon.
   (3) Redeem nutrition coupons at an amount that is the same as, or
lesser than, that charged other customers for identical foods.
   (4) Redeem and deposit nutrition coupons during specified valid
periods.
   (5) Deposit the nutrition coupons directly in the vendor's bank
account and not transfer them for cash payment, credit, or any other
benefit to any party other than the vendor's bank or the state.
   (6) Maintain for a period of at least three years records that
shall include, but not be limited to, all of the following:
   (A) Inventory records showing all purchases, both wholesale and
retail, in the form of invoices that identify the quantity and prices
of specified authorized supplemental foods.
   (B) Sales and use tax returns.
   (C) Books of account.
   (D) Other pertinent records that the department determines are
necessary to substantiate the volume and prices charged to the state
department through the nutrition coupons redeemed by the vendor.
   (7) Accept up to the maximum allowable department reimbursement as
payment in full for the maximum allowable quantity of food listed on
the food instrument.
   (8) Comply with department rules of vendor authorization,
reimbursement, and monitoring that control program food costs,
maximize participant access, and ensure program integrity.
   (b) The department shall adopt regulations to implement this
section and Section 123310 in accordance with the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code).  The adoption of any emergency regulations on
or after January 1, 2000, shall be deemed to be an emergency and
necessary for the immediate preservation of the public peace, health
and safety, or general welfare.  Emergency regulations adopted
pursuant to this section shall remain in effect for no more than 180
days.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to provide for the implementation of provisions designed
to ensure the integrity of the Special Supplemental Food Program for
Women, Infants, and Children as soon as possible, it is necessary
that this act take effect immediately.
